KatRisk, the disaster threat modelling software program supplier and the third-party threat modelling company for the NFIP’s FloodSmart Re disaster bonds, has been acquired by Technosylva, an organization targeted on wildfire simulation modeling, threat evaluation and operational response software program options.
Technosylva and KatRisk intend to supply purchasers an built-in strategy to threat evaluation, prediction, and response options throughout perils together with wildfire, flood, extreme convective storm, and different excessive climate threats.
Notably, for the insurance-linked securities (ILS) market, KatRisk has acted because the third-party threat modelling agent for the entire FloodSmart Re catastrophe bonds sponsored by the National Flood Insurance Program (NFIP).
That work within the disaster bond market started in 2018 and got here as considerably of a shock to many, as a a lot much less well-known threat modelling agency (to the cat bond market a minimum of) received the contract to mannequin the flood program dangers for the Federal Emergency Administration Company (FEMA).
However KatRisk had been working with authorities businesses, equivalent to FEMA, for some time previous to that, having been based in 2012 and constructed a specialism round serving to these entities to higher perceive the disaster, extreme climate and local weather dangers they had been going through.
As of now, KatRisk has assisted FEMA to safe greater than $3 billion of flood reinsurance restrict from the capital markets for the NFIP, by means of the FloodSmart Re cat bond program.
KatRisk currently sits in fourth place in our catastrophe bond risk modellers leaderboard.
The objective is to higher help and strengthen the evolving wants of purchasers equivalent to electrical utilities, the insurance coverage and reinsurance business, monetary establishments, and authorities businesses.
Technosylva has been increasing its extreme climate focus, most lately in a collaboration with CenterPoint Power, which appears to reinforce the utility’s resilience in opposition to the escalating dangers of utmost climate occasions.
“Because the frequency and severity of pure disasters enhance, the necessity for exact, multi-peril disaster modeling has turn into important,” defined Bryan Spear, CEO of Technosylva. “By uniting our respective strengths in wildfire threat modeling and disaster modeling, we’re positioned to supply our clients an unmatched suite of instruments to anticipate, plan for, and successfully reply to a large number of utmost climate occasions. We stay up for additional increasing and enhancing these capabilities as we enter our subsequent part of development.”
“Our objective has at all times been to leverage the very best out there science and expertise to guard folks, communities and belongings,” added Joaquin Ramirez, Founder and Chief Expertise Officer of Technosylva. “Becoming a member of forces with KatRisk allows us to increase our modeling and analytics capabilities throughout extra varieties of excessive climate occasions, offering clients with correct and actionable insights which are important to create extra resilient societies in a time when excessive circumstances have turn into the brand new regular.”
“KatRisk’s specialised flood and hurricane fashions have turn into indispensable for over 100 of the biggest insurance coverage and monetary companies corporations world wide, particularly in high-risk areas more and more impacted by local weather change,” Jeffrey Chen, CEO of KatRisk additional defined. “Partnering with Technosylva offers us the chance to supply a extra built-in platform, together with offering entry to the main wildfire fashions on this planet, filling a important want within the business, and guaranteeing clients have the insights and adaptability they should deal with their particular challenges and adapt to evolving local weather dangers. We consider this shall be transformative, not just for Technosylva and KatRisk, however for our clients and the communities they serve.”
There shall be no change to the present suite of merchandise, with each Technosylva and KatRisk persevering with to help their present choices, whereas working collectively to determine and capitalise on new ones.
KatRisk’s present choices embody well-known modelling software program SpatialKat and SoloKat. They provide outputs of monetary threat simulations for pure disasters, serving to insurance coverage corporations to quantify and put together for the impacts of catastrophic occasions like floods, hurricanes and extreme convective storms.
KatRisk goals to increase its providing to cowl different varieties of pure disasters to fulfill the rising demand for strong and diversified disaster fashions within the insurance coverage and reinsurance business.
